Buy Larsen & Toubro, target price Rs 2320: Emkay Global

Emkay Global has buy call on Larsen & Toubro with a target price of Rs 2320. The current market price of Larsen & Toubro is Rs 1853.65.

Time period given by analyst is one year when Larsen & Toubro Ltd. price can reach defined target.

Larsen & Toubro Ltd., incorporated in the year 1946, is a Large Cap company (having a market cap of Rs 261195.79 Crore) operating in Construction sector.


Larsen & Toubro Ltd. key Products/Revenue Segments include Income From Construction Work, Income from Manufacturing and Trading Activities, Other Operating Revenue, Other Services, Commission, Service (Engineering), Lease Rentals and Property Development for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 35305.04 Crore, up 17.75 % from last quarter Total Income of Rs 29982.70 Crore and up 11.75 % from last year same quarter Total Income of Rs 31593.77 Crore. Company reported net profit after tax of Rs 2231.33 Crore in latest quarter.

Investment Rationale
The brokerage reiterates Buy and raise the TP to Rs2,320 (Dec’22E) from Rs2,200, as it factors in the higher valuation of IT subsidiaries. It also increases FY23/FY24 EPS estimates by 3%/2%. While general awarding has been slow in the last few months, the pace of tenders has remained high, giving confidence in inflows for the fiscal year

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.86 per cent, DIIs 33.11 per cent.